South Korea’s Samsung Electronics is the only company of 16 to have this year exceeded both, investment and output targets under the PLI (Production Linked Incentive) for handsets and components. This could lead to incentives of the Rs 5.334 crore appropriation value for the year ending March 31, for other hand manufacturers such as Apple Contracts Foxconn and Wiston, Optiemus, Dixon, Lava, and Neolync. The PLI system for handset and component manufacturers was designed to attract businesses mainly from China and boost domestic and export manufacturing. It started in August 2020 for 16 enterprises, but in October 2020, it was approved. Incentives are provided for the achievement of investment and production objectives.
The PLI candidates are extremely angry and are working to achieve their goals. Many may do so, but not until the beginning of 2021-22, and a few will finish until March 2021. In the coming five years, 16 of the Rs 11,000 proposals were made by the government a few months earlier to produce Rs 10.5 lakh of Rs 10.5 crore from domestic and international firms. Foxconn’s two units, Wistron, Pegatron, and Samsung were supposed to invest Rs 250 crore each, and to produce Rs 4,000 crore incremental output every first year for a direct incentive of 6 percent. Samsung has been able to benefit from a previously acquired production unit in Noida and is less dependent on China on supply chains, thus helping to maintain its production in the harshest periods.
“An additional Rs 4,000 crore can be easily churned out for a business with an annual turnover of 50,000 crores”, said Asim Warsi, managing director for the industry. The goal was to provide Rs. 50 crore investments and a Rs 500 crore incremental output for Indian telephone manufacturers Optimums, Dixon, Lava, Bhagwati (Micromax), and UTI. Sahasra, Neolync, Ascent Circuits, Visicon, and Walsin were targets for component manufacturers with an investment of 25 crores and 100 crores.
The telecommunications industry urged the government to scale-up and combine the objectives with the goals for the coming year, but no decisions have yet been taken for less than a week to end. As of December 2020, seven companies have already exceeded their investment targets and more will now be available. Incentives on these lines will be calculated, but there will be no relaxation for the first year or targets.
Optiemus, Dixon, Lava, and UTI have confirmed that they have achieved investment targets, but not their objectives. The second-largest contract maker in Apple, Pegatron, is still to start its plant. The email sent by the stars Wistron, Bhagwati, and Neolync to Foxconn Unit Hon and Rising did not generate a response until press time. Ascent Circuits, Visicon, and the Walsin couldn’t be reached for the comment.
“Cloud demand from remote work and online education-related applications lifted the memory business while data centers’ demand increased streaming services and shopping. Samsung is a diverse technology giant that makes telephones, TVs, and home equipment as well as components such as chips and displays for consumer electronics. As computers and customers, Samsung counts Apple Inc and Huawei. In the second quarter, Samsung will have a bigger effect as it has spread to Europe and the USA by the beginning of March,” said Daishin, Securities Analyst Park Kang-ho.
And Samsung plans to create “Advanced logic devices,” to hit the targets in the market and the smallest and quickest types of customer computing chips. The company has an existing Austin chip plant that produces computer chips.
